Exercise 15-15A (Algo) Residual income LO 15-7 Perez Cough Drops operates two divisions. The following information pertains to each division for the year. Division Division Sales $ 201,000 $76,000 Operating income $ 16,900 $ 8,100 Average operating anseta $ 58,000 $40,000 Company's desired rate of return 179 178 Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Residual Income 5 a. Division A Division B b. The division that increased the company's profitability more is